Universal Display Corporation · NASDAQ:OLED
Universal Display — Investor Presentation (May 2020)
22 slides from Universal Display's investor presentation, May 2020
Slide 1: OLED Investor Presentation 2Q 2020
OLED Investor Presentation 2Q 2020 (May 2020) © UNIVERSAL DISPLAY CORPORATION 2020 ALL RIGHTS RESERVED
Slide 2: Forward-Looking Statements
All statements in this document that are not historical, such as those relating to the impact of the COVID-19 pandemic on the Company and otherwise, Universal Display Corporation’s technologies and potential applications of those technologies, the Company’s expected results and future declaration of
Slide 3: Universal Display Corporation
Universal Display Corporation Highly Critical OLED Energy- Innovator & Efficient Enabler PHOLED Fabless OLED 5,000+ Materials Global Supplier & IP Patents* Licensor * Pending and Issued Patents Worldwide as of February 17, 2020 3
Slide 4: What is an OLED?
What is an OLED? ➢ An Organic Light Emitting Diode is a series of organic thin films between two conductors ➢ When electrical current is applied, bright light is emitted ➢ OLEDs can be used for displays and lighting ➢ OLEDs are not just thin and efficient - they can also be made flexible and transpa
Slide 5: Business Model
Business Model OLED Innovation & Revenues Enabler Invention License Patent Device & & Licensing Architecture Royalty IP Fees PHOLED Composition Material Emitters & of Matter IP Sales Hosts 5
Slide 6: OLED Display Market Potential
OLED Display Market Potential Mobile TV IT/Wearables Other $50.0 $49.8 $47.4 $43.6 $40.0 $39.5 $ BILLIONS $30.0 $30.0 809M* $25.2 775M* $23.6 720M* $20.0 650M* 513M* $10.0 471M* 408M* $0.0 2018 2019 2020 2021 2022 2023 2024 *Unit Numbers are for mobile phones only Source: IHS OLED Display Market Tra
Slide 7: OLED Panel Area Demand
OLED Panel Area Demand Mobile TV IT/Wearables Other 20.0 20.0 17.4 10.2M* 15.6 MILLIONS OF SQUARE METERS 15.0 13.9 8.4M* 7.5M* 10.0 10.0 6.8M* 8.2 6.7 4.6M* 3.3M* 5.0 3.0M* 0.0 2018 2019 2020 2021 2022 2023 2024 *Unit Numbers are for OLED TVs only Source: IHS OLED Display Market Tracker – Q4 2019 (A
Slide 8: Strong OLED Display Market Drivers
Strong OLED Display Market Drivers • RED Phosphorescence • Improved image • Fewer manufacturing More Cost Effective Superior Aesthetics reduces power process steps Lower Power Usage quality consumption by 25% • Lower bill-of- • Thin and Light • Add GREEN: 45% materials • 180 degree viewing cumulativ
Slide 9: New OLED Smartphones
New OLED Smartphones Huawei P40 Samsung S20 iPhone 11 Pro Max ZTE Axon 11 5G TCL 10 Pro Oppo Find X2 Realme X50 Pro 5G Motorola Razr LG Velvet 9 Vivo X30 Pro Sony Xperia 1 II Honor 30 Meizu 17 OnePlus 8
Slide 10: More OLED Products
More OLED Products Samsung Galaxy Tab S6 Pimax 4K VR Headset LG CX 65” Class 4K Smart OLED TV Dell XPS 15 Royole FlexPai Developer 2021 Cadillac Escalade Sony - A8F BRAVIA Series Samsung Galaxy Watch Active 2 Huawei Watch GT 2 ZTE nubia Alpha LG Watch Style Apple Watch Series 5 10
Slide 11: LCD vs. OLED
LCD vs. OLED TFT+OLED+Refiner Diffuser Polarized Polarized Sheet Film Film Cell TFT Backlight Unit Polarized Film Color Prism Filter ✓ Lower BOM (bill of materials) ✓ Better Performance, More Efficient ✓ Thinner and Flexible Form Factor ✓ Vivid Colors and Superior Contrast Ratio Image source: LG 11
Slide 12: Strong OLED Lighting Market Drivers
Strong OLED Lighting Market Drivers Image source: LG Display • Low drive voltage • Wide range of CCT, • Thin and lightweight Highly desirable color quality Novel form factor & Low • Low operating high CRI possible • Transparent environmentally friendly temperatures, • Color tunable • Non-breakable,
Slide 13: OLED Lighting Around the World Today
OLED Lighting Around the World Today PEW 13
Slide 14: Innovation: Future Revenue Streams
Innovation: Future Revenue Streams Ink Jet Barrier Encapsulation Nozzle Liquid Solution Barrier Printing Organic Vapor Jet Printing Encapsulation P2OLED (OVJP) 14
Slide 15: Future Growth: Flexible
Future Growth: Flexible New Form Factors Unbreakable Lighter Thinner Huawei Mate X Lenovo ThinkPad X1 Fold Samsung Galaxy Z Flip Samsung Galaxy Fold 15
Slide 16: Strong, Broad and Deep Patent Portfolio
Strong, Broad and Deep Patent Portfolio We develop and license enabling technologies that are at the heart of consumer OLED products worldwide, from AR/VR, smartwatches, smartphones, IT, automotive and TVs to lighting products. We believe that our extensive portfolio of patents, trade secrets an
Slide 17: Patents are Universal
Patents are Universal China Europe (I-308 / P-234) (I- 786 / P-152) United States South Korea Japan (I-1205 / P-496) (I-385 / P-331) (I-823 / P-127) Taiwan (I-336 / P-36) Over 5,000 patents and pending applications* *as of February 17, 2020 17
Slide 18: Strategic Display & Lighting Partnerships
Strategic Display & Lighting Partnerships Display Lighting • AU Optronics • Fraunhofer IPMS • BOE Technology • HotaluX • China Star Optoelectronics • Kaneka • Innolux • Konica Minolta • Japan Display • LG Display • LG Display • Lumiotec • Tohoku Pioneer • OLEDWorks • Royole • Sumitomo Chemical • Sam
Slide 19: Historical Financial Performance
Historical Financial Performance Revenue Income ($ in millions) $428 $160 $156.1 $400.0 $405 $138.3 $130.5 $336 $326 $120 $115.4(3) $300.0 $247 $199 $80 $200.0 $191 $58.8 $44.8(2) $48.1 $40 $100.0 $- $0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 ASC 605 Adjustment $- $- $- $78.9 $22.9 Hosts $
Slide 20: Reconciliation of non-GAAP measures
Reconciliation of non-GAAP measures The following table details our reconciliation of non-GAAP measures to the most directly comparable GAAP measures: (1) The adjusted net income per common share, basic and diluted is derived from dividing adjusted net income by the number of weighted average shares
Slide 21: Robust Capital Structure
Robust Capital Structure ($ in thousands, except share data) March 31, 2020 Cash, Cash Equivalents and $639,776 Short-Term Investments Total Assets $1,136,376 Long-term Debt ------ A/P and Accrued Liab. $32,018 Deferred Revenue $149,431 Shareholders’ Equity $846,697 Total Shares Outstanding* 47,122,
Slide 22: Company Summary
Company Summary Global OLED Materials & Strong Financial Technology Leader Performance • Lighting up the OLED Revolution • $640M Cash, no debt* • License & Sell Proprietary • ~$13.50 in cash/share* Phosphorescent OLED Technology • High Margin Business and Materials to Display & Solid- • Lean Operati